Apple EBOOK

MD4210 Trends in Advertising © Singapore Polytechnic _________________________________________________________________________________________________________________________ MD4210 Trends in Advertising CA1: (40%) - Individual Submission Cover Sheet Note to students: 1. Please ensure that this cover sheet is included as the first page of your script before you make your submission to your lecturer. 2. Please ensure that you have read, understood and completed the Acknowledgement of Original Work below. 3. Please ensure that you clearly provide all the following details: Class DMC/FT/2B/22 Lecturer Ms Laura Chua Full Name Admission No. Lam Yan P2004808 Acknowledgment of Original Work All boxes must be checked before your submission is considered complete.  I confirm that all work contained herein is my own and not plagiarised.  I have properly cited all my sources in instances where I have used text, images, diagrams and other types of information from the Internet or other published sources.  I have not provided my work to any other student for any purpose whatsoever.  I understand that I will be held accountable in the event that I have copied another person’s work or allowed my work to be copied by another student. Diploma in Media and Communication Page 4 of 5 MD4210 Trends in Advertising

by : Lam Yan trends in advertising ebook

STNETNOC FO ELBA 1-2 APPLE'S HISTORY The history, story as well as values of the American technology brand, Apple. APPLE'S BRAND PILLARS 3 Two main brand pillars that are important to the Apple brand. APPLE'S ADS TIMELINE 4 Advertisements by Apple through the decades, from 1960s to 2020s. 5-7 PAST TECHNOLOGY TREND OF 8-9 APPLE Rich and extensive information on historical events that have impacted Apple. PAST LIFESTYLE TREND OF APPLE Rich and extensive information on historical events that have impacted Apple. 10-12 FUTURE HEALTH TREND OF APPLE Insightful and detailed explanation on how the brand can respond to this trend in the future. 13-14 FUTURE TECHNOLOGY TREND OF APPLE Insightful and detailed explanation on how the brand can respond to this trend in the future. 15 SUMMARY Detailed summary on how the analysed future trends of Apple can be useful for the brand's advertising practices.

FOREWORD FEATURE: THE AMAZING EVOLUTION OF APPLE.INC This ebook is based on Apple, an American technology company that provides deeper analysis and insights into Apple's advertising practices. This book covers key information about historical trends as well as forecasting future trends about Apple. The author, Lam Yan, has been a supporter of Apple products ever since she could remember. Thus, she chose this brand to work on for her assignment as she wanted to analyse the brand on a deeper level and share her understanding. This book was compiled by Lam Yan and is intended for students as well as consumers interested to know more about the tech giant, Apple. She hopes that the information in this book is interesting and can be used for further development at Apple.

Apple's Brand History Apple was founded on April 1, 1976 by Steve Jobs and Steve Wozniak, who had a vision of changing the way people viewed computers. Jobs and Wozniak wanted to make user friendly computers that were small enough for people to have them in their homes or offices. The company was called \"Apple Computer, Inc.\" during its first 30 years, but the word \"Computer\" was later dropped in 2007 to reflect the company's expansion into the consumer electronics market. Apple’s second product, the Apple II revolutionized the industry due to its introduction of the first-ever colour graphics. Sales soared from $7.8 million in 1978 to $117 million in 1980. The Macintosh was later released in 1984 where it contained a modern graphical user interface. Its introduction was announced by a famous $1.5 million television commercial that aired during the 1984 Super Bowl and was known as one of the most famous ads in advertising history. By the end of the 1970s, Apple had a team of computer designers and a production line. The company competed with major companies like IBM and Microsoft in the business and computing market. However, in the mid 1990s, Apple was in danger of going out of business as their products were boring and had poor branding. Jobs returned to Apple in 1997 and started building products which were a huge success in the following years. Apple launched the iPod in 2001, the iPhone in 2007, and the iPad in 2010. These products were a huge hit with consumers and in 2014, Apple earned close to $40 billion in profits, showing its huge growth.

Apple Products Overview Apple II Lisa release release in Jan 1983, a new brand in June 1977, a new of personal computer. home computer, iMac release Macintosh release in Aug 1998, all-in-one desktop computer. in Jan 1984, contained modern graphical user MacBook release interface. in Jan 2006, Intel based iPod release MacBook and MacBook Pro available. in Oct 2001, a mp3 player with click wheel interface. iPad release iTunes was announced in Jan previously. in Jan 2010, a tablet computer based on the iPhone release same software as iPhone. in Jan 2007, touchscreen interface mobile phone. AirPods release Apple Watch in Sept 2016, wireless release Bluetooh in-ear headphone. in Sept 2014, a wearable smartwatch.

PILLARS OF APPLE Branding Apple’s founding vision was giving power to the people through technology, and it remains committed to building computers for a better education. By establishing this emotional connection with customers, it builds this sense of trust and security around the brand’s products and image. Apple’s products are known to be designed around people and how it can provide a better experience for customers. The brand also abandoned the old rainbow-hued Apple logo in 1998 in favour of a more minimalist logo which helped to showcase Apple’s brand messaging in its advertising. Ecosystem One of Apple’s best strategies is the conceptualisation and usage of the ecosystem. Shared content enabled by the iCloud where purchased or rented applications, books, music etc are shared between all the Apple devices that a user has. It allows the content to be synchronised where users are able to continue what they were working or browsing on in another device. The ability to work and continue the progress with another device from the same brand incentivised consumers to remain loyal and continue to buy more products from Apple. This seamless user experience that Apple provides allows customers to be satisfied and continue to purchase from them.

APPLE ADVERTISEMENTS HISTORY TIMELINE BEST SELLING PERSONAL COMPUTER (1978) One of the first few Apple ads, introducing Apple's latest invention - the Apple II. This print ad listed the qualities of the computer, making it a favourite in the market then. It has new softwares, different languages which makes it attractive to consumers. ITS A WISE MAN WHO OWN AN APPLE (1980) During the 1980s, most people were not able to afford a computer at home or at work. Most offices had one or a few computers only. Apple’s main aim was trying to convince people that they needed a personal computer, especially an Apple computer. It was portrayed as a kind of tool that could make genius even better. THINK DIFFERENT (1998) The ad campaign started with a narration that said “Here’s to the crazy ones. The misfits. The rebels. The troublemakers.” Great leaders like Gandhi, Albert Einstein were used to influence people that a Macintosh might allow them to \"Think Different.\" Through the use of emotional appeal and self perception, Apple was able to lead customers to think that the brand is relatable and understands them. IPOD SILHOUETTE FEEL GOOD (2003) Apple used silhouettes dancing and moving freely to their songs on the iPod helped to advertise songs on the iTunes store, which was revealed in the same year. The striking use of colours and movement used in videos featuring well known artists like The Black Eyed Peas, Coldplay made a lasting impact and impression among people globally. LIFE (2012) Featuring indie actor, John Malkovich, this advertisement showcases SIRI, the iPhone 4s built in AI feature. The ad featured the actor asking the virtual personal assistant for advice for life. Apple was trying to move away from product led promotion, as it wanted to appeal to new users. PRIVACY ON IPHONE (2020) Apple published the brand’s latest ad in its \"Privacy on iPhone\" series where it shows the personal, sensitive data that are stored on mobile devices where it implied and promoted the iPhone which is able to keep this information safe. In line with the brand’s belief where privacy is a \"fundamental human right\" and belongs only to the customer.

PAST TECHNOLOGY TREND 01 Technology is always showing signs of change and will be for a long time. With the vast majority of people following news about the latest new inventions and doing whatever they can to keep up to date with the latest technology trends, many people tend to hop from one product to another that can better serve their needs. When looking at the innovation and technology in the market currently, most of them came from Apple. They were usually the ones to come up with novel ideas which have led to their competitors utilizing and expanding on Apple's ideas for their own products. To a certain extent, Apple has been arguably the biggest contributor to today’s technology. Apple has had a significant positive impact on today’s society with its products like the iPhone or iPad, which has made a positive impact on society with their wide range of capabilities. The iPhone is known to have substituted many gadgets like alarm clocks, flashlights, music players etc. Users are able to access these functions all within a device which makes it very convenient. Apple’s business models were also innovative in coming up with new ways to create, and deliver great experiences such as matching the iPod and iPhone with iTunes and the App Store respectively. In the technology industry, everything is volatile as new levels of technology can be invented or the next great technological breakthrough can happen. One of Apple’s first major breakthroughs in the market was the iPod — a portable media player that promised to overshadow the clunky design and low storage capacity of MP3 players introduced in the mid-1990s. The iPod boasted the ability to “hold 1,000 songs in your pocket” and allowed users to listen to music beyond the confinement of their homes where one could listen to music on the way to work and on the go.

PAST TECHNOLOGY TREND 01 Before 2007, there was no touchscreen phone that people could use by hand and Apple, using its technology, changed the definition of a smartphone with the introduction of their first iPhone (Copeland, 2010). Mobile phones that were in the market at that time like Nokia, Blackberry had devices with a similar look and feel, where it featured a small screen alongside a physical keyboard. Apple's first touchscreen phone, the iPhone 2G boasted a 3.5-inches multi-touch display. The iPhone was seen as a flexible and multifunctional device where it was basically an iPod, a phone and an internet communicator added together. Apple also allowed third-party developers to create apps for their new platforms which was a game- changer for the mobile industry then. After its release, a lot of companies started producing touchscreen devices which kickstarted the smartphone era. The market for smartphones soared, and different companies started to make their own variations of the gadget in order to take advantage of the developing business sector. Through the years, Apple continued to improve and came up with more technological features that were able to interest consumers. Such as the unveiling of the Telephoto camera lens in 2016 which allows users to take photographs with Bokeh effects. It was a brand new feature for a smartphone during that time and was soon incorporated in almost all the smartphones by other manufacturers afterwards. A year later, Apple released the iPhone X which uses facial recognition technology for users to log in to their device.

PAST TECHNOLOGY TREND 01 APPLE PAY EVOLUTION Apple Pay service was announced in 2014, during the iPhone 6 event when Apple announced that this service will “transform mobile payments with an easy, secure and private way to pay”. It helps to ensure a smoother and easier online and contactless payment experience by incorporating NFC into the iPhone 6 and 6 Plus where users can authenticate payments using their TouchID or passcode. Since then, Apple Pay has evolved. In June 2017, the brand announced a new feature as part of the iOS 11 where Apple Pay allows users to send and receive money directly from their contacts via iMessage. A few years later in 2019, the Apple Card was rolled out to consumers. Based on the Apple Pay experience, customers can use credit to pay for goods. Some perks included having a 3% cashback on Apple products and 2% cashback if paid with Apple Pay. Due to the Coronavirus pandemic where cash was seen as a possible carrier for the virus, many preferred using digital or contactless payment as it helps to minimise the risk of coming in contact with the virus. This led to the use of cash dropping by 42% worldwide. According to Juniper Research, QR code payments is expected to be the most used digital commerce method for the next five years. This is similar to Singapore where the most popular payment method is contactless card payment where 84% of respondents surveyed use it. Based on this study, Singaporeans prefer the use of contactless payments over other modes of payment as the top reasons cited for this preference were the convenience and rewards given. According to Pyments.com, a specialist site that focuses on payment methods, 42% of respondents said that they use Apple Pay ‘whenever they remember that they can’. Apple Pay allows convenience and helps consumers save time when making their payment as instead of looking for a card to swipe, one can just use their iPhone or Apple Watch to finish the transaction. Once users are accustomed to the convenience of using their smartphones to make their payments, it means that they are likely to adopt this preference for all their payments in the future. Several advantages of contactless payment include having enhanced authentication embedded in smartphones such as facial recognition systems as well as the convenience of having the card details already stored on the device.

PAST LIFESTYLE TREND 02 As technology became more ingrained in our everyday lives, technology brands have also shifted their positioning from utility brands to lifestyle brands. This gradual transformation of technology drove brands to improve in their marketing messaging of brand, throughout the course of recent years. People want and desire an experience – something that motivates them to invest and buy. As such, companies have learned how to attract their customers by offering them more than just a product, but also the lifestyle that they crave too. Lifestyle brands are effective in marketing to their target audience because they have a deep understanding of the experiences that their audience wants, as well as the things, and places that inspire them. W​ h e n A p p l e l a u n c h e d t h e “ 1 9 8 4 ” c o m m e r c i a l , t h e y w e r e t r y i n g t o introduce their new product in a market that was largely dominated by IBM. Apple used lifestyle marketing to gather people’s attention by creating the idea that by buying the Macintosh, people would be different from others and they can participate in something big. Consumers were intrigued and were eager to purchase the Macintosh even though Apple did not mention any specifications about the new computer. The earliest ads of Apple also positioned its products as an experience, and not just a technology accessory or gadget available in the market. Apple is different from other brands because to the brand, consumers aren’t just consumers, they are people. These are the people filled with dreams, hopes, and passion. Steve Jobs got Apple to design products to improve consumers lives, which is still evident in Apple today. In order to market that, Apple created experiences that were memorable and kept people coming back for more.

PAST LIFESTYLE TREND 02 LIFESTYLE MARKETING Apple uses lifestyle marketing as the brand creates and promotes a strong lifestyle around its hardware. Lifestyle marketing involves a brand connecting itself to the ideals, aspirations of their identified target audience and creating the idea that using their product or service will be able to bring the target audience closer to the specific lifestyle that they want to live. Apple’s unique selling point (USP) is that they sell a lifestyle, rather than just a product. When one purchase an Apple product, it is simply not just a device to do their work, surf the internet or connect with friends. It is buying into Apple’s belief that people with passion can change the world and build a better place with Apple products. Apple segments its products to highlight a key point of the product which targets specific users experiences. For example, the iPod for the user's music experience, iPhone for its user-friendly applications. Over the years, Apple has improved by customising its devices to fit consumers lifestyles where features like the ultra-wide angle camera on the iPhone, fall detection and electrical heart sensor features on the Apple Watch. Not only are these features in line with users' needs, but allows them to be attached to their device as it is a new experience for consumers. Apple has also diversified by breaking into a new market for their products by partnering with Cochlear, a hearing assistance company that produced implant sound processors in 2017. Through this partnership where they created a special compatible processor, Apple aims to be more inclusive and widen its reach in the market. Users can use their iPhone or iPod touch to control, monitor and customize their hearing through the Nucleus Smart App, which is free from the App Store. In 2015, Apple also launched the \"iPhone upgrade program\" where users pay a certain amount every month to get a new phone every year. This is similar to paying a monthly fee for consumers to have access to Apple’s ecosystem and lifestyle where they own an iPhone or iPad and have access to iCloud and Apple Music etc. This enables Apple to keep consumers within the brand’s ecosystem as through the long term commitment plan, they are likely to continue to spend money at Apple. This enables brand loyalty as consumers will feel attached to Apple as it is already a part of their life.

FUTURE HEALTH TRENDS Apple’s CEO, Tim Cook, has repeatedly stated that health and wellness are key focus points for Apple. According to the Global Wellness Institute, the health and wellness industry is now worth more than $4.2 trillion. This is a huge opportunity for Apple to capitalise and work on their products since Apple Watch is currently the brand’s first and only product that focuses on health. According to Statista, Apple holds the largest share of the global smartwatch market where it accounted for 47.9% share of the market in the first quarter of 2020. Smartwatches have gained traction in recent years – with the concept of having built-in functions that makes them versatile devices. The inclusion of sensors, fitness trackers and apps has allowed them to become more popular and useful for consumers. As per World Health Organisation (WHO), there has been a steady growth in the adoption of electronic health records over the years. More companies and brands have shown an interest in developing healthcare-related real-time applications and software as part of the global digitization trend. A study done for Generation HealthTech also found that respondents showed strong support for use of digital healthcare management tools. Currently, health and electronic medical record companies as well as medical device makers do not prioritise user experience as much as compared to Apple. This would mean that they will lose to Apple if consumers desire and expect for better user experience in their medical care. Apple has the upper hand among its competitors as the brand has its own ecosystem of products such as the built-in user base, brand, and incentive structure that work seamlessly with each other. Their expertise in both hardware and software will be possible in creating, structuring, and interpreting health data for patients.

FUTURE HEALTH TRENDS Apple’s Hardware components are also improving during these few years as the brand has moved its chipmaking to in-house and its A12 chip is mainly focused on running AI applications. It is highly likely that Apple will use this opportunity to make healthcare more patient-centric and use it as its USP. This allows consumers to invest more of their time, preferences as well as data into Apple products where consumers will find that these products are essential items that they need in their lives. According to trends compiled by Linkedin, over the past year, Apple's open job listings in health-related fields have increased by over 220%. Apple has been focusing on hiring health-related professionals which is also the fastest-growing segment for the company over the past year. Many of these jobs focus on health research which is essential in helping to support the development of new health- related features as well as products that Apple can roll out in the future. Through the testing and monitoring of the Apple Watch, more health features can be expected to be added to future Apple products since the development of the Apple Watch features are still ongoing. Apple will also increase its focus on health-focused hardware and software so that the brand can expand in the health and wellness market as the market opportunity in the health industry is huge, and Apple can aim to expand its reach and dominate the market.

COVID-19 MARKET OPPORTUNITIES COVID-19 has dramatically changed the healthcare system and impacted patients' behaviours. The increased attention on healthcare as a result of the pandemic has resulted in more patients being active in being a part of their healthcare where they seek online information and share their own health details to gather more help and information. During this pandemic, there has been an increased need for alternative medical care and attention which led to a demand for telehealth and virtual services. Consumers are satisfied with virtual services which lead to an increase in access to virtual disease management as well as mental health services. This is a positive change in consumers and will last well beyond the pandemic due to the change in consumers’ behaviour. Apple should grab this opportunity and expand from its current invention, Apple Health Records. Currently, Apple Health Records stores the user’s clinical and medical history which allows easy access to medical information from the iPhone and convenience in sharing the data with healthcare professionals. According to McKinsey, AI is one of the prime innovative trends that have the power to revolutionize the way businesses are carried out in the current times (Chui & Francisco, 2017). Apple can look into developing its current AI strategy of using sensors and algorithms to analyse and search for the latest available virtual services for consumers that are searching and seeking medical attention. Major countries such as China, India and Japan are also contributing more to the healthcare market's growth. For instance, China and India are adopting IT technologies in the healthcare sector which will boost the growth of the digital transformation in the healthcare market over the next few years. In China, Apple’s performance has been on the rise where it surpassed VIVO in October 2021 to become the largest smartphone original equipment manufacturer for the first time since December 2015, according to Counterpoint Research. Apple’s popularity with the Chinese consumers showed that the China market is one that the brand can look into where they can collaborate with local IT firms to develop special health-related products which will be targeting the healthcare sector in China.

FUTURE TECHNOLOGY TRENDS With the growing digital interest from consumers, Apple will certainly look to develop from its current innovations and enter into the virtual reality (VR), augmented reality (AR) and mixed reality (MR) market. In addition to the growing consumer interest, Apple’s Chief Executive Officer Tim Cook looks highly on such technology, going as far as to say that augmented reality is “a critically important part of Apple’s future” during an interview with journalist Kara Swisher. This indicates that such technologies will be heavily focused on moving forward in Apple’s future. Moreover, Apple analyst Kathy Hubert of Morgan Stanley also believes that there will be massively wide adoption of VR and AR when Apple enters the market which is most likely when Apple releases their own devices. This would be a very profitable venture for Apple as according to Statista, the AR market will reach US $198 billion in 2025. While there has been no official statement by Apple’s stand on an all-virtual world, however, Tim Cook believes that AR is a bigger deal and area to explore than VR. This makes it more plausible that Apple will opt to develop and create devices that will tie the physical world with the digital world through a greater emphasis on AR rather than creating a “metaverse” with VR. Such technological devices Apple may develop and release in the future could be lightweight, fashionable glasses or contact lenses focused on communication, content viewing or gaming. These devices could show notifications from social apps while the user commutes, removing the need to lift up their wrists/hands to view the notification from their Apple Watch or iPhone. These notifications can include consumer personalised responses to be sent which are pre-set by the user. In addition, these devices could also show reviews when the user is looking at a restaurant or eatery, or show arrows overlapping the physical street the user is seeing, showing the user step by step directions while commuting with the aid of Apple Maps. As for Apple’s venture into gaming in this AR / VR market, Apple could either use the aforementioned potential products or release another wearable smart glasses device solely for virtual/mixed reality gaming. Such devices could have a “full virtual mode” where it would use Virtual Reality technology to immersify the user into potential new Apple Arcade games that are solely developed to be played in VR, as well as extend their current technology where the current Apple Watches is able to detect if the user is clenching their fists, etc to creating a smart band that can detect user hand movement alongside these new devices suggested earlier.

AUGMENTED REALITY FITTING ROOM TECHNOLOGY During this COVID-19 pandemic, retail companies like Uniqlo, Sephora have offered consumers a virtual option for their shopping, while other brands have created virtual fitting rooms which allow customers to try on the products as if they are in the shop itself. These AR tryout tools have been on a rise in recent years, with one brand being Home Depot, where it allows users to view 3D visuals of what their products would look like in a specific area as part of its app features since 2013. Virtual fitting room technology has been projected to hit $10 billion by 2027, showing its immense potential and growth for companies that are looking into this business. Customers that are unable to visit the store in person will be able to enjoy a similar experience where they are able to view or try on the products virtually through the use of this technology. According to the 2020 IBM U.S Retail Index report, 41% of respondents were interested in trying a virtual fitting room to enhance their shopping experience, while 18% answered that they tried such technology before. Although this technology is currently used by fashion and retail brands, it has yet to be used by electronics brands. Apple should capitalise on this technology by being an early adopter among its competitors in using this new trend to offer consumers a new and positive experience. Consumers can use this technology to virtually try out how the products would look and feel in their hands before making a purchase. As such by expanding into this part of the market, Apple will be able to boost traffic to its stores and attract consumers interest. Some technology that Apple can develop and release as part of the virtual fitting room technology is creating a virtual fitting room for interested consumers to try on their Apple products like the iPhones, Mac Minis, Apple Watches etc. For example, consumers can test out the latest iPhone 13 Pro Max cinematic mode by holding and shooting a short video in the room itself or the Airpods Max spatial audio by playing a song to test the music quality. This virtual trying out will be a new and fun experience that Apple is offering as consumers can try a wide variety of Apple products available and might be able to interest them to purchase more than what they wanted to originally buy. This idea of allowing consumers to try test out the products before purchasing them online is also more convenient and safe, especially during the pandemic.

CONCLUSION In conclusion, Apple has been leading the market for years and will continue to influence the market with its innovations and products. As one of the biggest leaders in mobile technology, it will be exciting to see how Apple continues to innovate and push limits with their products. In recent years, Apple has also been contributing to the health and wellness industry especially so after the reveal of their Apple Watches which has seen significant success. As part of Apple’s effort, the brand should look into the highlighted future trends such as the opportunities brought on by the COVID-19 pandemic in order to better expand its reach in the market. On the other hand, in the market less explored, Apple acknowledges the potential of AR, VR and MR technology, and no doubt will be looking to profit from the market by releasing their own wearable AR driven devices. There is certainly the potential of Apple shaking up the market as they did back in 2007 with the iPhone by redefining the formula of a widely adopted, successful wearable AR device. Finally, Apple may further utilise their research on AR to revolutionise AR fitting rooms where customers try the latest features available from Apple’s latest product line which will compel customers to spend more, from the safety and convenience of their own homes.

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